Bond yields edged lower on Thursday as credit rating agency Crisil in its latest report has said that as much as 43% of India’s micro, small and medium enterprises (MSME) universe by value is expected to remain below the pre-pandemic (fiscal 2020) level in terms of earnings before interest, tax, depreciation and amortisation (EBITDA) margin this fiscal (FY23) because of inability to completely pass on the high prices in some commodities as well as an unfavourable exchange rate.
In the global market, the benchmark 10-year U.S. Treasury yield dipped Wednesday as markets absorbed better-than-expected retail sales data. Furthermore, oil prices rose on Wednesday, erasing earlier losses, after an incident involving a commercial vessel off the coast of Oman, but rising COVID-19 cases in China capped gains.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.25% from its previous close of 7.27% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.11% from its previous close of 7.14% on Wednesday.